Case Law Details
PCIT Vs Pnc Infratech Ltd. (Allahabad High Court)
Introduction: The article delves into the case of PCIT Vs Pnc Infratech Ltd., recently adjudicated by the Allahabad High Court. The appeal, arising from the Income Tax Appellate Tribunal’s decision, centers on the addition of unexplained credits under Section 68 of the Income Tax Act for the assessment year 2010-11.
Detailed Analysis: The crux of the matter revolves around a capital infusion of Rs. 19 crores by three entities—M/s Jewellock Trexim Pvt. Ltd., M/s Alberta Merchants Pvt. Ltd., and M/s Gurprasad Holding Pvt. Ltd. The tribunal dismissed the revenue’s appeal, upholding the CIT (Appeals) decision to delete the additions made by the assessing authority.
The substantial question of law posed in the appeal questions the Tribunal’s alleged failure to consider material facts, the chain of transactions, and the probative value of statements, citing the Sudarshan Silk and Sarees case (300 ITR 205, SC).
However, the High Court found that the raised question did not arise in the presented facts. While doubts and suspicions arose during search proceedings, the Court emphasized the absence of evidence establishing the investment as bogus. The investors had disclosed the investment through banking channels, and doubts were solely based on unproven statements.
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